Barrick Gold will put its share of Kalgoorlie’s Super Pit gold mine on the market.
In its June quarter production report, the company said they “intend to initiate a process to explore the sale” of their 50 per cent stake in Kalgoorlie Consolidate Gold Mines (KCGM).
The market has predicted the sale of its half-stake since Barrick started divesting its Australian gold operations two years ago, and ceded operational control of the mine to JV partner Newmont Mining, according to The West Australian.
The Super Pit was expected to produce approximately 700,000 to 730,000 ounces of gold this year, at an average all-in sustaining price between US$670 to US$700 per ounce, and in the June quarter produced 194,000 ounces at an all-in sustaining cost of US$674 per ounce.
Co-owner Newmont flagged its potential interest in Barrick’s share last year, with Newmont CEO Gary Goldberg saying, “That’s one asset that we know pretty well and if we could obtain it at the right value that would be one that we’d be interested in considering.”